Chinese Woman Pleads Guilty in U.S. on Illegal Export to Pakistan Reactor

Xun Wang, the former managing director of a U.S. company's Chinese subsidiary, pleaded guilty to conspiring to export material to Pakistan for use in a nuclear reactor.

The Pakistan Atomic Energy Commission runs the Chashma 2 Nuclear Power Plant to which Wang, 51, of PPG Paints Trading (Shanghai) Co. Ltd conspired to export high-performance epoxy coatings. She faces up to five years in jail and a fine of $250,000. Wang, who is a Chinese citizen and lawful U.S. permanent resident, has already paid a separate $200,000 penalty in connection with her case.

The U.S. Commerce Department added the PAEC to the list of banned end-users of such goods under American export regulations after Pakistan's first successful detonation of a nuclear device.

At the end of last year, the Chinese subsidiary of a U.S. company pleaded guilty to illegally exporting high-performance coatings for use in a Pakistani nuclear reactor, said U.S. Attorney Ronald Machen in Washington.

Today we are pleased to see the former managing director of that subsidiary accept responsibility for her role in the crime. We also welcome the defendant's decision to cooperate with the government in our ongoing investigation of this blatant violation of U.S. export laws, he said.

According to her plea documents, PPG Industries sought an export license for the shipment of coatings to Chashma II in January 2006 and the U.S. Department of Commerce denied the application in June 2006.